JAKARTA (TheInsiderStories) - The Association of Indonesian Food and Beverage Entrepreneurs (GAPMMI) estimates that the food and beverages (F&B) industry can grow 5 - 7 percent in 2021, driven by the economic growth. The projection is still below the annual growth rate these sectors, which usually around 7 - 9 percent.
Earlier, the organization sees the F&B industry is expected to grow by around 4 percent in this year. In the second quarter of 2020, these sector grew by 0.22 percent on an annual basis compared to the same period in 2019.
The chairman, Adhi S. Lukman, said the normal growth rate can only be achieved again in the next 2022. He emphasized that the growth will also depend on the consumption of the middle and upper class. Usually, the contribution of the two segments reached 82 percent of the total F&B consumptions.
“We hope that the government’ consistency will continue with various incentives for workers, direct cash assistance, and then incentives for the SMEs (small and medium enterprises),” he stated.
Data from the statistics bureau showed that the contribution of the manufacturing industry to GDP reached 19.87 percent in the second quarter of 2020. . However, these targets were revised when the pandemic hit. Data from the industry ministry, the growth of the F&B industry grew 9.23 percent in 2017, then in 2018 increased by 7.91 percent, and in 2019 grew 8 percent.
“This positive growth certainly depends on the development of the pandemic, which is expected to decline and disappear from Indonesia soon. If these things are achieved, we project that the food and beverage industry can grow by around 3 percent by the end of 2020,” said the director general at the ministry, Abdul Rochim, said .
He continued, there are several leading commodities that spur the performance of the food and beverages industry such as processed fish, noodles and coffee. The growth of this industrial sector is also supported by the increase in the export value of crude palm oil and palm kernel oil, he adds.
In order to maintain a positive trend in the food and beverage industry sector, one of the important steps that his office is to encourage the availability of raw materials to meet the needs of manufacturing sectors. Rochim is optimistic that the performance of the food and beverage industry can still grow positively for the next period.
On a separate occasion, the minister, Agus Gumiwang Kartasasmita, emphasized that the food and beverage industry is one of the mainstay sectors that support manufacturing growth and the national economy. The important role of this strategic sector is evident from its consistent and significant contribution to the gross domestic product (GDP) of the non-oil and gas industry.
He revealed that the food and beverage industry is also a dominant business sector in the country, especially the small and medium industry. This becomes the foundation for the rotation of the national economy.
“In accordance with the aspirations on the road map for Making Indonesia 4.0, we are targeting the food and beverage industry to dominate the Southeast Asian region,” said the minister.
He stated, there are many food and beverage products produced by Indonesia that are favored by foreign consumers. For and example, Indonesian instant noodles get a great demand by countries in Africa. His ministry, said Kartasasmita, also continues to encourage market expansion and diversification of export-oriented food and beverage products.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
